Answer:
cash 110,000 debit
land 100,000 credit
gain at disposal 10,000 credit
--to reocrd teh sale of land--
accounts payable 80,000 debit
cash 80,000 credit
--to record the payment of liabilities--
gain at disposal 10,000 debit
Morgan 7,500 credit
Halsted 2,500 credit
--to distribute the gain from sale--
Morgan 22,500
Haslted 7,500
Cash 30,000
--to liquidate the partnership--
Explanation:
ratio 3:1 (3+1=4)
Morgan 15000 share of 3/4 = 75%
Halsted 5000 share of 1/4 = 25%
there is gain of 10,000 in the sale distribute as follow
Morgan 10,000 x 75% = 7,500
Halsted 10,000 x 75% = 2,500
Now we close the account against cash
